Litigation Release No. 19745 / June 28, 2006

The Securities and Exchange Commission announced that on May 16, 2006, the Honorable K. Michael Moore, United States District Judge for the Southern District of Florida held a hearing regarding the sanctions to be imposed upon Defendant Luis Cornide and his wife, Joanna Datesh for violating the Court's Temporary Restraining Order and Order of Preliminary Injunction (asset freeze orders). The Court ordered the Cornides to pay the Receiver $258,451.43 or quit claim their Coral Gables property or be incarcerated until such time as they purge their contempt. The Cornides paid the Receiver $258,451.43.

Previously in July 2005, the SEC and the Receiver filed the civil contempt action against the Cornides for violating the asset freeze orders. A two-day contempt hearing was held on January 23-24, 2006. On March 23, 2006, Judge Moore found the Cornides in civil contempt.